AgResource Farm Marketing Advice for Tuesday: 1/ Wheat Producers: Exit 25% of 2021 Wheat Hedges basis July Chi futures at $5.86. ARC feels uncomfortable with being 50% sold as the 2021 Russian wheat crop suffers under a drought. The US has reached a tipping point in terms of use of the 2020 soybean crop. The…
La Nina Pattern Persists; Brazilian Precip in January Critical: A classic La Nina-driven South American climate pattern is forecast into the opening days of January. Normal tropical shower activity will stabilize soil moisture levels across Central and Northern Brazil. Little/no precip is offered to Argentina, with dryness again reaching into Paraguay and Southern Brazil. The…
Black Sea Feed Wheat Price Stays Elevated; Barley Market Rising: US Gulf corn remains very well positioned to dominate global feedgrain trade between now and early summer. Brazil’s interior market is again rising, while Brazilian fob offers have disappeared altogether. It is well known that US corn is the world’s cheapest origin but rising non-corn…
AgResource estimates Dec 1 US wheat stocks at 1,646 Mil Bu, down 155 Mil Bu from last year, the lowest since 2014. Total Sep-Nov disappearance of 498 Mil is down 30 Mil from last year amid weaker projected feed use and unchanged exports. Yet, the attached table shows that US wheat inventories continue to erode…
US Demand Rationing Rally Underway; Argentine Dryness Being Closely Monitored: A mutation of Covid-19 in the UK produced a sharp decline of the macro financial markets which included the CBOT soy futures overnight. Traders that bought the breakout above $12, booked profits on fear of another pandemic. However, end user and fund buying emerged which…
